The consumers of Apple have a flexible variety of product line from its competitors. Apple has strong rivals like Samsung, Dell, Lenovo, HP, Microsoft, HTC, Sony, LG, Xaomi etc. The main substitute is defined by the operating system. The Microsoft windows by Microsoft and android by Google can be considered as the substitute of Mac. The electronic market, specifically the smartphone market is emerging day by day, so there is a strong possibility of entrance of new competitors.
Despite Apple´s Apple Watch was introduced to an already existing market in which competitors had an advantage in the way they were better established upon the matter, statistics of sales and reviews have proven its current success at the level that it gradually dominated the market. According to the article published in the Forbes webpage which makes reference to the reports from Tractica, a market intelligence firm, “the Apple Watch’s share of the smartwatch market could hit 68 per cent by the end of the year.” (Forbes). Source: Forbes These statistics show the market presence of Apple and its competitors in terms of percentage which also resemble sales revenue Apple has from its product, sales revenue does not equate as profit, even though, Apple´s pricing strategies in the introduction stage enable the business to increase the income and perceive a significant difference from its cash outflow and therefore its previous estimated profits justified directly through the business annual report. 10-K Annual Report, Sep 26,
Apple Inc. is one of the largest and most successful corporations not only in today’s world, but throughout history. They have, year after year, proved that they are more than capable of providing their consumers with products that fit their needs and help enrich their everyday lives. Not only do they provide the here and now needs of consumers but Apple Inc. also looks to the future and what needs consumers will have to come. They have had an abundant amount of success in the world of technology. Apple Inc. is an immensely large company that provides enormous number of products to its consumers in order to meet the demands of consumers Apple Inc. has to outsource much of its production to other companies, many of those being located outside
For instance, Apple has already created the Mac, iPad, and iPhone. However, the people behind the success of Apple’s creations are not yet contented with what they have already given the whole world. They came up with another technology inspired device which is not only an ordinary accessory, but an important tool or special accessory that anybody can use. The newest and latest creation of Apple is the Apple watch. This watch is not just an ordinary watch that can give you the time element.
This multi-billion dollar company models, develops, and sells high-tech electronics, computer software, web-based services, and PCs. Founded in 1976, Apple’s products have since been desired by millions worldwide. From their mp3 players to their personal computers, and everything in between, Apple has proven itself number one in the technology market. According to NBCNews (2011), Apple is number one because they constantly improve products, have strong relationships with their distribution center, and have sleek product designs. Now, they are outdoing competitors like Samsung, Dell, and Microsoft (TodaysiPhone, 2012).
2.0 Situation Analysis 2.1 PEST Political Factors (CONS) Potential Impact of Legal Factors on Apple The recent entry of Apple in the highly regulated financial services sector and by offering financial services , could increase the level of regulation, government oversight and litigation . Reports of Apple planning to enter another highly regulated sector of automobile manufacturing could also increase regulatory, insurance and the cost of litigation. Apple is highly vulnerable to piracy and litigation due to their dependence on products such as software and music for its income. Economic Factors (PROS) Apple Drives Economic Growth Apple posted growth and record-setting revenue numbers during the most recent recession, being one of the few bright spots, it provides hope for many. During the past recession Apple has launched the iPod and iPad.
targets the younger generations with more advanced technologies for examples teenagers .The iPhone, iPod and mac computers are spread worldwide. The company 's target includes almost all sectors of the society. Its targeted consumer is for younger and the older generation, Boys and girls. They have designed the gadgets colours according to it. Most of them in the UK and the US are using apple Co. products from iPod to the iPhone.
Apple Inc. has transformed its image from an inventive computer manufacturer to a fully-fledged consumer 's electronic company. Some facts of its success can be calculated from its sales is 21.7% in the year 2014. (Apple Inc. 10-k 2014). This essay will be covering how the apple Inc. accomplishes the global competitive advantage based on the Star Analysis frame work. HOME COUNTRY ADVANTAGE Apple Inc. was founded in 1976 in USA and since then Apple Inc. has been leading the way in innovating new products, however it has encountered numerous ups and downs since they started.
A scandal will be in the news and the stocks will fall for that specific company. However, judging by the nature of these corporations: oligopoly in an industry that has a very high cost of entry and high rate of bankruptcy, Apple and other tech giants are here to stay and they cannot fail. Because in which case, where will the people get their source of high end tech products that are well-designed and functional by a team of highly trained professionals. There is a reason why Apple and Google survives the scandals. First, technically they have ties that can clean up or just pay settlements for lawsuits from their huge assets.
This is when Apple has stores and branches across the world which is geographic segmentation because their outlets are located in high populated cities where they can serve their customers easily and providing products and services which meet their expectations. On the other hand, Apple’s stores are mainly based in populated regions such city centres, shopping centres, airports and many more areas which are busy and crowded with customers. This business has official websites and online existences across the world. This business has stores in city and shopping centres as it attracts audiences because everywhere they walk would see Apple advertisements on their new products or services which makes this business is visible and ahead of their rivals in the market and in the competition. This business locates its stores in high populated cities because they aim for high income and rich customers as they would be aware that those customers would be willing to pay high prices for their products or services where this business leads the competition with high profits and market share.